Employers’ group the Associated General Contractors of America (AGC) has warned that the US federal government shutdown, now in its 13th day, could undermine construction projects across the country.
It urged Congress to quickly pass what it called a “clean continuing resolution” that would allow vital infrastructure and public works projects to continue.
AGC chief executive Jeffrey D. Shoaf said federal officials who need to sign off on change orders, conduct project inspections and award new projects are likely to be on furlough.
“In other words, the longer the government is shut, the more likely construction employment around the country could be impacted negatively,” he said, adding: “Construction workers around the country are counting on Congress to do its job and fund the government.”
In a guidance note, the AGC said contracts already awarded on a fixed-price basis would not be substantially affected by the shutdown.
But it said the shutdown would likely suspend operations completely for others, including: most cost-type contracts; time and materials contracts; and contracts that are indefinite delivery-indefinite quantity (IDIQ), multiple award construction (MAC), and multiple award task orders (MATO).
The guidance added that projects that require access to federal facilities or checks and guidance by federal officials could also face delays.
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